Display Fab Utilization Downturn ‘More Severe’ Than Forecast: DSCC

Nearly a month into the quarter, the sharp slowdown in Q3 display-panel fab utilization is “even more severe” than previously projected, reported Display Supply Chain Consultants Monday. “After a full year of panel prices falling with no end in sight, and after the entire display supply chain built excessive inventory, panel makers started to reduce utilization in Q2 and the slowdown has accelerated in Q3,” said DSCC. The factory slowdown is “broad-based” across China, Taiwan and Japan, but South Korea utilization is increasing due to the “dramatically higher share” of its capacity devoted to OLED panel production, compared with other regions, it said. DSCC estimates 45% of South Korea’s display fab capacity is apportioned to OLED, compared with only 5% in China and “negligible” share in all other regions. “While OLED is not immune to the general market downturn in both TVs and smartphones and has lower utilization in 2022 as a result, the seasonality of OLED smartphone sales remains a dominant attribute in the market,” said DSCC.